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Page 1: Sustainability Report Brose Group 2017...5 This Brose Group Sustainability Report outlines the report-ing period from 1 January to 31 December 2016 and – where permissible and/or

Sustainability Report Brose Group 2017

Page 2: Sustainability Report Brose Group 2017...5 This Brose Group Sustainability Report outlines the report-ing period from 1 January to 31 December 2016 and – where permissible and/or
Page 3: Sustainability Report Brose Group 2017...5 This Brose Group Sustainability Report outlines the report-ing period from 1 January to 31 December 2016 and – where permissible and/or

Contents

Notes on this report 5

Foreword 6

1. Brose – At a glance 8

2. Products and company 10

Product portfolio and quality 10 Door and liftgate systems 10 Adjustment systems for front and rear seats 10 Electric drives 10Development and innovation 11Locations, sales, partners and employees 12Interest groups, public funds and taxes 15Code of conduct 17

3. Supply chain and customers 18

Raw materials and resources: Responsibility in each of the business divisions 18 Packaging: Use of materials in the Brose Group worldwide in 2016 18 Materials used in the business divisions 20 Secondary raw materials in Brose products 21 Ecological footprint of Brose products 21 Packaging recovery at Brose: Reusable instead of non-reusable 23Supplier management: High quality, good partnerships 23 The Brose supply chain 23 Quality thanks to communication: Stakeholder engagement in purchasing 24 Brose values local suppliers 24 Supplier assessment in consideration of ecological aspects 24 Validation of new suppliers 25 The Brose Code of Conduct aims to achieve humane conditions 25

4. Environment 26

Our goal 26Responsible use of resources: Energy, raw materials, carbon footprint 27 In detail: Reduced energy demands in the business divisions 27 Measures for reducing greenhouse gases 29Energy use and emissions: Efficiency is the primary objective 29 Our energy consumption from a range of sources 30 External energy consumption 30 Streamlining energy-intensive processes 31 Efficiency measures for reduced energy consumption 32

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Greenhouse emissions: Reduction is the long-term objective 32 Emissions from generating purchased energy 34 Emissions from the downstream value chain 34 Determining the intensity of GHG emissions 35 Long-term objective: Reducing and replacing ozone-depleting substances 35 Reducing air emissions with intelligent processes 35Transport and logistics: State-of-the-art intralogistics in Ostrava 36Waste: Avoid, prepare, dispose of professionally 37 Disposing of hazardous and non-hazardous waste 38 Pollution 38 Environmental regulations: Violations of applicable laws 39Biodiversity: Having a positive impact 39Water and effluents: Responsible treatment of the most important element 40 From fresh water to rainwater: Specific water removal 40 Treated and reused water 41 Effluent discharge systems and water quality 42 Fines and non-monetary sanctions 42

5. People at Brose 43

Goal: Shared responsibility 43Value-oriented HR work 43Systematic employee development 44 Varied career paths 44 Apprenticeship training: The foundation for the future 45 Apprenticeship award in the US 45 Consistent integration of new curricula 46 Strengthening interdisciplinary expertise 46Performance and compensation 46 Fair wages 47 Bonuses for business success 47 Additional company benefits 47Good working conditions: Health and society 48 Global health management 48 Exemplary child care: The Brose Kids Club 49 Care: A strong network 49 Keeping an aging workforce fit 50 Work-related accidents 50 Outstanding employer awards 52 Regular employee surveys 52 Social benefits in focus 53 Attractive additional benefits 53 Pension plan 53Corporate diversity 54 A global team 54Social commitment – Sponsoring activities at Brose 55

Contents

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This Brose Group Sustainability Report outlines the report-

ing period from 1 January to 31 December 2016 and – where

permissible and/or possible – the reporting period from

1 January to 31 December 2017.

We have selected the GRI standard with the comprehensive

“in accordance” option “Core” for this Sustainability Report.

We have implemented the basic reporting principles in a

team comprising a range of functional areas. This working

group met twice in 2017 and twice in 2018 to coordinate the

contents of the report. While defining the contents of the

report, aspects such as the availability of data and the justi-

fiability of publication were weighed along with other topics.

No non-company units or stakeholders were involved in the

preparation of the Brose Group Sustainability Report. This

Sustainability Report has not been reviewed by external

auditors.

Responsible for content in the sense of German Press Law:

Jan Saeger, Vice President Communications, Brose Group,

Brose Fahrzeugteile GmbH & Co. Kommanditgesellschaft,

Coburg, Max-Brose-Straße 1, 96450 Coburg, Germany.

The Brose Group does not have an executive-level position

with overarching responsibility for economic, environmental

and social topics.

To improve readability, our Sustainability Report generally

uses the masculine form to denote both genders.

Liability disclaimerWe have prepared the data contained in this Sustainability

Report with the utmost care. Nevertheless, we cannot rule

out any errors. Consequently, the Brose Group accepts no

liability and makes no guarantee with respect to the correct-

ness or accuracy of the information contained in this

Sustainability Report. In addition to retrospective analysis,

forward-looking statements made in this report were pre-

pared based on existing forecasts. Although these have

been prepared with the utmost care, unforeseeable devel-

opments in the future may lead to different results. There-

fore, any forward-looking statements made in this report

should not be regarded as certain. The Brose Group

reserves the right to update this Sustainability Report with-

out additional notice.

In the Notes we refer to the following GRI standards:

G4-3, G4-16, G4-18, G4-19, G4-20, G4-21, G4-22, G4-23, G4-24, G4-25, G4-26, G4-27, G4-28, G4-29, G4-30,

G4-31, G4-32, G4-33, G4-36.

In Section 1 “At a glance” we refer to the following GRI standards:

G4-3, G4-4, G4-5, G4-6, G4-7, G4-9, G4-34, G4-38, G4-56.

In Section 2 “Products and company” we refer to the following GRI standards:

G4-4, G4-6, G4-8, G4-10, G4-16, G4-56, G4-57, G4-58, G4-EC4, G4-EC7, G4-LA-1, G4-SO3, G4-SO4, G4-SO5,

G4-SO6, G4-SO7, G4-SO8.

In Section 3 “Supply chain and customers” we refer to the following GRI standards:

EN-1, EN-2, EN-27, EN-28, GRI-12, GRI-24, EC-9, EN-32, EN-33, LA-14, LA-15, HR-4, HR-5, HR-6, HR-10, HR-11,

SO-9, SO-10.

In Section 4 “Environment” we refer to the following GRI standards:

G4-EN3, G4-E4, G4-EN5, G4-EN6, G4-EN7, G4-EN8, G4-EN10, G4-EN11, G4-12, G4-13, G4-EN14, G4-EN15, G4-16, G4-

17, G4-EN18, G4-EN19, G4-EN20, G4-EN21, G4-EN22, G4-EN23, G4-EN25, G4-EN26, G4-EN29.

In Section 5 “People at Brose” we refer to the following GRI standards:

G4-11, G4-15, G4-51, G4-52, G4-HR2, G4-HR8, G4-EC1, G4-EC3, G4-LA2, G4-LA3, G4-LA6, G4-LA7, G4-LA9, G4-LA10,

G4-LA11.

Notes on this report

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Since it was established by Max Brose 110 years ago, the

long-term development of our company has been a top

priority. Sustainable, value-oriented commitment and an

environmentally conscious approach are firmly established

at Brose.

As a family-owned company, a stable ownership structure

makes us a reliable partner. The small number of owners

and, consequently, modest distributions mean that the Brose

Group can finance its growth completely independently.

Profits are consistently reinvested in further developing the

company.

Our product portfolio focuses on the trends comfort, safety

and efficiency. It goes without saying that environmental

protection and the conservation of natural resources are a

priority for us. We introduced Brose environmental standards

as early as twenty years ago and have continued to develop

them ever since: we take over 40 aspects such as freedom

from hazardous substances and energy efficiency into ac-

count when developing new components and systems. We

optimize our production and logistics processes as well as

our use of materials in manufacturing: for example, we use

recycled or recyclable material, use reusable packaging and

optimize the transport chain within and outside of our com-

pany. At the same time, we aim to ensure our products are

used in the most resource-conserving way throughout their

life cycle.

As part of these efforts we rely on our comprehensive,

decades-long expertise in mechatronics and the interaction

of mechanical, electric, electronic and sensor systems. We

have a clear focus on the seat, door, electric drives and elec-

tronics product fields. The door division centers on light-

Foreword

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Foreword

weight design and new features, while the seat division con-

centrates on lightweight design and advancements in new

interior design concepts and the drives division is focused

on reducing emissions by electrifying auxiliary systems.

Our products’ contribution to reduced consumption and

fewer emissions is independent of the vehicle drive type.

Electrification of vehicle drives is on the rise; they are be-

coming more automated and connected. These factors will

have an impact on how we travel in the future. The automo-

tive industry is undergoing a fundamental change: we see

major opportunities for our business and are aligning our

portfolio of products to respond to the shift in our industry.

We are using the opportunities created by e-mobility and au-

tonomous driving to our advantage, achieving technological

advances in our product range and solidifying our market

position.

Products and processes geared at achieving economic and

ecological sustainability are a solid foundation – but the cul-

ture a company lives by is key. Our family-owned company

cherishes values such as responsibility and respect. This ap-

plies to our customers, suppliers and partners, but it begins

with us: our employees are accustomed to aiming for top

performance and constantly developing their skills and

talents. We appreciate their intense motivation and extreme

dedication. This is why we create the right conditions so that

our employees can grow in line with their capabilities and

tasks. For us this includes appropriate remuneration, safe

workplaces and personal development opportunities.

Our company is involved in numerous projects in each of its

locations worldwide – in the tradition of our company’s

founder, Max Brose. We accept social responsibility and

sponsor projects, investments and individuals in society,

education, culture and sport. One of our key aims is to intro-

duce our values to young people and help them improve

their education and situation in life.

This Sustainability Report offers an overview and examples

of everything Brose has already achieved with respect to the

environment, society and sustainable business management

and what our goals are for the future.

And we will continue to rely on the knowledge and dedica-

tion of our employees, the stability of our family-owned com-

pany, on our innovative strength, the quality of our products

and long-term partnerships with customers and suppliers in

the years to come.

Sincerely,

Kurt Sauernheimer

CEO of the Brose Group

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Brose is the world’s fourth-largest family-owned automotive supplier. No matter where in the world a car door or window is opened, a car seat adjusted or the air conditioning turned on – you will almost always find Brose Group technology in use. Although usually not visible to the driver, our products pro-vide more comfort, safety and efficiency. Brose is the market leader in many areas, for example in door systems, electroni-cally commutated cooling fan modules or premium front seat structures. The 100% subsidiary Brose Antriebstechnik has been manufacturing e-bike drives since 2015.

Facts and figures25,525 employees, 61% in Europe and Africa, 21% in America and 18% in Asia.

Three headquarters in Coburg (CEO, Seat division), Hallstadt (Door division) and Würzburg (Drives division) along with two regional headquarters in Detroit/USA and Shanghai/China.Headquarters: Max-Brose-Str. 1, 96450 Coburg, GermanyInvestments in research and development: 8% of turnover

Executive managementShareholder familyMichael Stoschek (CEO), Christine Volkmann and their respective childrenAdvisory BoardFranz-Josef Kortüm (Chairman), Prof. Dr. Christian Rödl, Prof. Dr.-Ing. Thomas WeberExecutive Management Board (as of May 2018)Kurt Sauernheimer (CEO and Door business division), Thomas Spangler (CTO), Niklas Beyes (Executive Vice President Commercial Administration Brose Group), Periklis Nassios (Purchasing Brose Group), Patrick Popp (Drives business division), Sandro Scharlibbe (Seat business division), Jörg Schwitalla (Executive Vice President Human Resources Brose Group).

The shareholder meeting is the highest governing body in the Brose Group. Three of its members are women and two are men. All of the shareholders have been involved in the business and worked on social causes for years.

The Brose executive management adopted the FIRST com-pany principles and introduced them worldwide with the aim of delivering first class performance in every respect. Every letter stands for a principle:

F Family

The family places the company’s interest ahead of their own. Thus, we will grow in a profitable and self-financed way, and maintain our family-owned company’s independence.

I Innovation

We set standards with innovative mechatronic systems and components, securing a leading market position with the best price-performance ratio.

R Respect

Every employee, especially every manager, is a role model. Aware of our social obligation, we act fairly towards employees on all levels and at all locations.

S Success

We deliver top performance to our customers. Therefore, we set the highest quality standards for ourselves and our partners.

T Team

Shareholders, board members and employees collaborate based on trust, take clear and fast decisions and assume responsibility for their actions.

1. Brose – At a glance

Philosophy The Brose Group

Last updated: 31 December 2017

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Brose – At a glance

Locations and internationalizationBrose operates 62 locations in 23 countries, including 44 of our own plants and six production sites with local partners.

Turnover in 20176.3 billion eurosBy region: Europe 3.4 billion euros, America 1.6 billion euros, Asia 1.3 billion euros

By division: Door 3.2 billion euros (51%), Seat 2.1 billion euros (33%), Drives 1 billion euros (16%)

Product portfolio DoorDoor systems

Side door drives

Window regulators

Closure systems

Liftgate systems

Motors and drives and electronics

SeatFront seat structures

Rear seat structures

Seat components

Adjustment systems for the

vehicle interior Motors

DrivesSystems for thermal management

and the drive train

Motors for chassis and steering

Electronic controls

Sensor technology

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2. Products and company

Brose is the world market leader in the development and

manufacturing of mechatronic products for vehicle doors

and liftgates. With over 90 years of experience we set trends

that enhance safety and comfort. Our door systems

integrate all of the mechanical, electrical and electronic

functions of a vehicle door into a single door system. This

eliminates a number of components, thereby reducing

weight and costs. Brose supplies these systems to our

customers’ assembly lines pre-tested, ready-to-fit and

synchronized with their vehicle production. The result: faster

installation and lead times with increased quality overall.

We support environmental requirements to reduce CO2 with

lightweight design that features an intelligent material mix

Product portfolio and quality

and optimum functional integration. One example is our door

system with organo sheet carriers, which saves over five

kilograms per vehicle compared to conventional steel doors.

Our system for hands-free opening and closing of liftgates

and trunk lids sets new standards. We have transferred this

expertise to a power side door drive that makes a new

dimension of comfortable vehicle access possible. The con-

cept is flexible: it can be adapted to different space and door

architecture requirements, depending on the vehicle manu-

facturer. Our contact-free sensor technology is a new bench-

mark in safety: these sensors detect obstructions and stop

liftgates and doors from closing before a collision occurs.

Our expertise is based on decades of experience in anti-trap

protection for window regulators.

Door and liftgate systems

No matter where in the world a car door or window is opened,

a car seat adjusted or the air conditioning turned on – you will

almost always find Brose Group technology in use. Although

usually not visible to the driver, many of the features that

enhance vehicle safety, comfort and efficiency are based

on our products. Backed by decades of expertise in

mechanics, electrics, electronics and sensor technology, we

develop comprehensive solutions for our customers.

Virtually no other car feature must satisfy as many individual

needs as the vehicle seat – from passengers’ growing com-

fort expectations to the desire for maximum flexibility in the

vehicle interior. Components and systems from Brose help

manufacturers to meet this challenge. Our portfolio ranges

from manual seat adjusters to all-electric power seat struc-

tures with lumbar support and a massage function. Active

positioning of the headrest and side bolsters along with ad-

justment of the rear seat entertainment complete the product

range. Our goal: to increase passenger comfort and safety

– from entering the vehicle and buckling up to adjusting the

seat position. The megatrends of e-mobility and autonomous

Adjustment systems for front and rear seats

driving demand new, dynamic interior concepts. In response,

Brose has developed functional adjustment systems. We offer

car manufacturers mechatronic systems for the entire vehicle

interior from a single source, above and beyond the seat. This

makes new, coordinated interior usage scenarios possible.

We pushed ahead with the standardization and modular-

ization of our portfolio at an early stage. This enables us to

easily adapt products to meet customer and model-specific

requirements and to produce them at the same consistently

high level of quality worldwide. This is a key benefit for our

customers, especially when it comes to global projects. We

continuously improve all components, keeping a constant

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Products and company

The future trends connectivity, autonomous driving, new

mobility concepts and electrification are transforming the

automotive industry. As a system supplier we provide car

manufacturers with innovative products – always with the

goal of increasing safety, enhancing comfort and maximizing

efficiency. We invest in future projects, such as power side

door drives, new usage concepts in the vehicle interior and

power auxiliary systems like air conditioning compressors.

We spend about 8% of our turnover in research and devel-

opment each year. We also continuously invest in the further

qualification of our employees and the expansion of regional

development areas. With more than 3,000 technicians and

engineers, over 10% of our employees work in this area, a

third of whom are located outside Europe. More than 200

patent applications each year are proof of our company’s in-

novative strength. Finding inventive ways to use sensors is

Development and innovation

the basis for a number of new features. Brose has set bench-

marks when it comes to hands-free opening and closing of

liftgates. We transfer this expertise to develop innovations

for new products such as collision protection for power side

doors. And this is one of the reasons we work with start-up

companies. The use of modern technologies helps Brose re-

duce development times for new products. Additive manu-

facturing processes not only enable us to manufacture proto-

type components but also pre-series tools. This means that

the time required from the completion of the virtual model

to the use of the sample part made from the original mate-

rial is only weeks instead of months. At the same time, effi-

cient simulation methods ensure that far fewer physical tests

are required. Comparing calculations with testing helps us

deepen our understanding and further develop our analysis

methods.

Advances in electrification are impacting further develop-

ments in our motors and drives. We are systematically align-

ing our portfolio so that we can flexibly adapt to this trend:

the Brose modular motor system enables us to quickly react

to changing requirements – across all vehicle types and elec-

trical system architectures – thanks to standardized compo-

nents. Power auxiliary systems reduce energy consumption

and at the same time make driving a more pleasurable ex-

perience. One example is the electric air conditioning com-

pressor. This is more economical than conventional variants

powered by an internal combustion engine because it only

works when it is needed. It also increases driving comfort,

for instance when the air conditioning system ensures that

the car is the desired temperature before passengers enter

the vehicle. Electric vehicles are in any case dependent on

this technology.

Brose delivers over 200 million electric motors and drives

every year, making it a market leader. In addition to thermal

eye on the overall system – with a clear focus on costs, func-

tion and weight. Thanks to advanced material concepts and

production methods, we produce what is currently the light-

est seat structure worldwide for high-volume production.

Electric drives

management, these are also used in the drive train as well as

in the chassis and steering. They also operate window regula-

tors, seats, liftgates and side doors. Our motors and drives

are available in a power range of 20 to 6,500 watts and

voltages of 12 to 810 volts.

The system approach is our top priority when developing

new products: we integrate mechanical, electric, electronic

and sensor systems to create perfectly coordinated

products. This enables us to increase efficiency while min-

imizing package space and noise. The electric oil pump is

one example: first we combined the motor and the elec-

tronics into one unit. Then we expanded the pump in the

next step, combining three components in a single, com-

pact housing. Brose drives reduce consumption. We follow

a system approach in development, thereby optimizing the

degree of efficiency, package space and acoustics of our

products.

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Products and company

To us, customer proximity also means being close to our

customers geographically. This is why Brose makes invest-

ments to build new plants and strengthen existing locations.

Internationalization is a key component of our growth strate-

gy. The corporate group operates in 23 countries worldwide.

Alongside Germany, the US, Mexico and China, where the

majority of our production and development locations are

found, this also includes the following countries:

Brazil, Canada, Belgium, France, Great Britain, Italy,

Portugal, Russia, Sweden, Slovakia, Spain, the Czech

Republic, Turkey, Hungary, South Africa, India, Japan,

South Korea and Thailand.

Locations, sales, partners and employees

We supply our products to all key automotive markets in

around 40 different countries. Our customers are vehicle

manufacturers and tier 1 suppliers who use our products in

their systems.

In 2016 24,634 Brose employees (year-end figures) in 62

locations generated 6.1 billion euros in turnover.

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Products and company

16,558

Total26,634

4,133

3,943

Permanent employment contracts

Fixed-term employment contracts

Temporary workers

2. Employees 2016

excluding temporary workers, by group

3. Employees 2016

excluding temporary workers, by region

25,000

25,000

20,000

20,000

15,000

15,000

10,000

10,000

5,000

5,000

0

0

Total

Men

Women

Total

Total

Salaried employees

Germany

Wageearners

Europe(excluding Germany)

Direct labor

Asia

Apprentices

North America

South Ameri-ca

20,6

91

14,7

02

5,98

9

20,6

91

14,7

02

5,98

9

7,77

6

5,59

1

2,18

5

7,59

1

5,89

3

1,69

8

3,34

4

2,93

3

411

5,37

2

3,23

3

2,13

9

9,22

5

5,91

1

3,31

4

3,08

5

2,39

2

693

346

267

79

4,20

5

2,85

2

1,35

3

438

332

106

Total

Men

Women

1. Employees 2016

by employment contract

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Products and company

Total under 20 20-29 30-39 40-49 50-59 From 60

New entries 2,739 157 1,239 842 352 134 15

Share of workforce (%) 13.2

4. New entries by age group 2016

Share of designated workforce groups (%) 54.7 23.3 12.5 7.6 4.2 2.9

Total Male Female

New entries 2,739 1,878 861

Share of workforce (%) 13.2

5. New entries by gender 2016

Share of designated workforce groups (%) 12.8 14.4

Total Germany Asia North America South America

New entries 2,739 501 1,129 426 600 83

Share of workforce (%) 14.6

6. New entries by region 2016

Share of designated workforce groups (%) 6.6 21.0 13.8 14.3 18.9

Total under 20 20-29 30-39 40-49 50-59 From 60

Exits 1,976 29 729 663 323 147 85Share of workforce (%) 10.0

7. Exits by age group* 2016

Share of designated workforce groups (%) 9.6 14.3 10.6 7.2 4.8 18.8

Total Male Female

Exits 1,976 1,445 531 Share of workforce (%) 10.0

8. Exits by gender* 2016

Share of designated workforce groups (%) 10.3 9.4

Total Germany Asia North America South America

Exits 1,976 256 710 289 599 122Share of workforce (%) 10.0

9. Exits by region* 2016

Share of designated workforce groups (%) 3.4 14.6 10.5 14.5 26.9

Europe exclu-ding Germany

Europe exclu-ding Germany

* excluding joint ventures

* excluding joint ventures

* excluding joint ventures

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Products and company

In accordance with our goal to deliver first-class performance

in every respect, the shareholders, advisory board and

executive management board of our corporate group have

approved the following company principles based on the

term “FIRST”.

F – Family: The family places the company’s interest ahead of their own.

Thus, we will grow in a profitable and self-financed way, and

maintain our family-owned company’s independence.

I – Innovation: We set standards with innovative mechatronic systems and

components, securing a leading market position with the

best price-performance ratio.

R – Respect Every employee, especially every manager, is a role

model. Aware of our social obligation, we act fairly towards

employees on all levels and at all locations.

S – Success: We deliver first-class performance to our customers. There-

fore, we set the highest quality standards for ourselves and

our partners.

T – Team: Shareholders, board members and employees collaborate

based on trust, take clear and fast decisions and assume

responsibility for their actions.

We want to be a point of contact for suppliers, society and

policy makers at our locations and promote socially and

environmentally responsible development. Our responsibil-

ity takes into account the entire life cycle with regard to the

impact of our products on the environment. We are com-

mitted to the continuous improvement of our processes in

consideration of the economic aspects and necessities. It is

our goal to

– Sustainably reduce adverse environmental effects.

– Improve the energy efficiency of our products and continu-

ously improve production.

– Prevent risks of injury and health hazards.

– Provide a safe and ergonomic working environment for our

employees.

– Use suppliers that follow our sustainability and ethical

principles.

– Provide the necessary financial, structural and human

resources.

– Comply with legal and regulatory requirements.

We avoid risks, prevent mismanagement and fight waste. We

eliminate or mitigate the causes whenever and wherever we

identify these. If this does not achieve the intended objec-

tive, we take organizational and HR-related measures.

We are engaged in politics and society in the countries in

which we manufacture our products. This is why we are a

member of national and international interest groups. In

Germany some of these groups include the Employers’

Associations of the Metalworking and Electrical Industries

in Bavaria (bayme), the German Electrical and Electronic

Manufacturers’ Association (ZVEI), the Association for Sup-

ply Chain Management, Procurement and Logistics (BME),

the German E-Mobility Association (BEM) and the German

Association of the Automotive Industry (VDA). We are also

members of the German chambers of commerce in the US,

China, Slovakia, Spain, Japan, France, Great Britain, India,

Italy, Mexico, the Netherlands, Sweden, Hungary, the Czech

Republic and South Africa.

Interest groups, public funds and taxes

We are aware of our responsibility to society and act accord-

ingly. This also applies to handling taxes. Media reports cov-

ering major corporations’ attempts to avoid taxes and inter-

national tax competition paired with rising national debts

have brought corporate finance policy to the public eye. Ma-

jor media focus on what appear to be dubious business

practices can result in existential damage to the reputation of

affected companies. This is why observing laws, compli-

ance, ethical, environmental and social standards are be-

coming more and more essential to the success of long-term

customer and employee relationships and thus for sustained

business success.

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Products and company

The Brose Group received around 4.7 million euros in public

funds in the form of tax breaks and tax relief in 2017. More

than half of the total amount was granted to our company’s

locations in Europe.

10. Public funds 2017

in millions of euros, in % of the total payments, by region

11. Tax breaks and tax relief 2016 in millions of euros, in % of the total payments, by region

Germany

Europe (excluding Germany)

USA

China

Rest1.940%

1.327%

0.511%

0.511%

0.511%

0.511%

Total4.7

100%

6.626%

3.614%

0.83%

4.116%

10.641%

Total25.7

100%

With 1.9 million euros, around 40% of the total funds went to

our German locations. In addition, locations in the China and

US regions also received 0.5 million euros in tax breaks each.

Germany

Europe (excluding Germany)

USA

China

Rest

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Products and company

The Brose organization already has key compliance ele-

ments. They are currently being consolidated into a com-

prehensive Compliance Management System that satisfies

national and international standards. This is of the utmost

priority for our company. The principal focus of the program

will be anti-trust law and avoiding corruption. The Compli-

ance Management System is set up to be a preventative

solution and is constantly being expanded.

The Brose Code of Conduct defines standards for ethical

and legally compliant behavior that is binding for all employ-

ees. This also includes rules on avoiding corruption. The

company will not tolerate any behavior that contradicts the

Code of Conduct and such behavior may result in legal ac-

tion. No breaches to the Code of Conduct were reported in

2017.

The Brose Code of Conduct has been and is given to every

newly hired employee. Like our company principles, it is

published on our website and on the intranet. Key contents

of the Brose Code of Conduct include: collaboration with

business partners, in particular fair business practices and

avoiding corruption as well as avoiding conflicts of interest,

handling information and other assets, fairness and diversity,

responsibility in the workplace and quality and environmen-

tal protection. The rules and procedures are updated and

adapted to current demands on a regular basis.

Supervisors are tasked with ensuring that the employees as-

signed to them understand and comply with the Brose Code

of Conduct. Our employees are required to participate in an

e-learning course on the Brose Code of Conduct every 36

months. Course content is updated regularly. The cours-

es last about an hour and raise awareness of the behavior

norms outlined in the Brose Code of Conduct while making

employees conscious of proper conduct in their day-to-day

work. There is no breakdown of the exact amount of time

required for this.

Code of Conduct

In the period from 2015 to 2017 9,693 employees completed

a corresponding e-learning session. The average fulfillment

rate for the year 2017 is approximately 90% worldwide. The

Brose Global Terms and Conditions of Purchase (GTCP)

oblige our business partners to be socially responsible and

comply with all applicable laws, in particular those governing

the avoidance of corruption.

An analysis of the risks of corruption in the Brose Group

showed that the level of risk did not exceed the industry av-

erage in any of the relevant areas. No cases of corruption

were confirmed in 2017, which is why Brose did not receive

any fines or penalties due to corruption offenses in 2017.

If employees have questions about compliance topics or are

aware of any potential compliance violations, we expect

them to actively seek a personal meeting with their supervi-

sor to discuss the matter. If employees do not wish to dis-

cuss a specific compliance topic with their supervisor, they

can directly contact the Chief Compliance Officer, the local

Compliance Officer, the local legal department, their re-

sponsible HR support officer, the works council or the head

of Human Resources Brose Group. Every concern is always

treated as confidential. Brose uses campaigns like the

“Compliance Day” at its regional headquarters in Shanghai

to raise awareness of compliance objectives and guidelines

among all employees. In China, topics such as bribery pre-

vention and data privacy are also subsumed under compli-

ance.

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3. Supply chain and customers

The Brose Group is aware of its responsibility when it comes

to our limited natural resources. We continue to work on

this topic in many different areas of the business in order to

identify and achieve potential related to more efficient use of

resources.

Our goal is to manufacture products that are free from haz-

ardous substances to protect our consumers’ health. When

selecting materials, we consider compliance with legal and

customer-specific guidelines. We actively follow up on these

efforts in working groups.

Raw materials and resources: Responsibility in each of the business divisions

This is why we have already held our Environment and

Technology Day four times. Interested employees can learn

about subjects such as lower energy and raw materials re-

quirements, lower CO2 emissions and, not least, associated

reductions in production costs.

Both Brose employees and external lecturers shared infor-

mation and ideas during our Environment and Technology

Day in 2017. Topics of interest included how to use product

design, manufacturing processes and logistics processes to

achieve higher resource efficiency in ongoing projects.

During the 2016 fiscal year material use in the Brose Group

for non-reusable packaging was 14,385 t versus 395,383 t of

material in reusable packaging.

Packaging: Brose Group material use worldwide in 2016

Material Tons

Plastic 189,789.23

Steel 177,117.23

Wood 22,971.69

Paper 9,377.38

Plastic/metal 7,984.29

Other 2,495.73

Aluminum 33.00

1. Material tied to non-reusable and reusable packaging

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Supply chain and customers

2. Product packaging materials in 2016

Aluminum

Wood

Plastic

Plastic/metal

Paper

Steel

43% 46%

6%1%

2%2%

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

4. Composition of reusable packaging 2016

share of weight in t

Material

177,117.2

18,293.1

7,984.3

189,286.9

Other

Steel

Paper

Plastic/metal

Plastic

Wood

Aluminum

33.0

0.4

255.2

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

3. Composition of non-reusable packaging 2016

share of weight in t

Material

9,122.1

4,678.6

82.2

502.4

Other

Paper

Plastic

Wood

The share of non-reusable packaging in all packaging used

worldwide in the Brose Group is only just over 3%. Figure

3 shows the share in percentage values: paper and wood

comprise the largest share of non-reusable packaging mate-

rials, with a total of 95%.

At over 96%, reusable packaging is by far the most com-

monly used packaging in the Brose Group worldwide. Our

logistics efforts focus squarely on working with reusable

packaging whenever possible. Figure 4 shows the weight

share of the different materials in percentage values:

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The Brose Group product portfolio in the Door, Seat and

Drives business divisions requires the use of a wide range

of materials.

In 2016 we used around 531,000 t of different materials.

A detailed breakdown of the use of materials is provided in

Table 5.

The range of products in the business divisions was bro-

ken down into groups to determine which materials were

used: double-guided window regulator, single-guided win-

dow regulator, door module front, door module rear, spin-

dle drive, control unit, capacitive sensor, soft-close feature,

hood latch, lock striker, lock, latch module, tailgate latch,

backrest, seat substructure, rear seat 2nd row, rear seat 3rd

row, components, cooling fan module, drive train actuator,

electronic braking system, power steering motor, HVAC

blower, window regulator motor and other. One product was

selected to represent each product group. For this product

an analysis was performed on the material composition from

the IMDS (International Material Data System). At the same

time the respective production volumes were also included

in the analysis.

Because the production volumes do not correspond 100%

with the real quantities and not every product in the respec-

tive product group features the same design, the figures pre-

sented here only provide a rough estimate.

The following overall distribution can be inferred from Figure

6 from the detailed breakdown of the renewable and non-re-

newable material groups in the Brose Group.

Materials used in Brose products

Material Use of materials in tons

Share in percent

Steel 407,692.54 76.74

Plastic 40,472.33 7.62

Glass fiber fabric-rein-forced plastics

38,635.23 7.27

Aluminum 24,219.45 4.56

Alloys 5,106.56 0.96

Other 3,945.80 0.74

Copper 3,872.98 0.73

Ceramic/Glass 3,401.04 0.64

Paints 2,090.00 0.39

Auxiliary materials 1,164.02 0.22

Other special metals 595.91 0.11

Natural materials 38.47 0.01

Supply chain and customers

6. Use of materials for products in 2016

by material

Metal

Plastic

Ceramic/Glass

Natural materials

Auxiliary materials

Others83.11%

14.89%

0.64%

0.01% 0.22%1.14%

5. Use of materials for products in 2016

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Supply chain and customers

Secondary raw materials, i.e. processed or recycled raw

materials, are essential materials for a number of products.

Brose business divisions use these materials wherever it

is possible and makes sense. Moreover, the manufactured

products can also be recycled. We calculate the recyclability

of our products based on an international standard.

The share of secondary raw materials in relation to the over-

all amount of material saved is 37% in the Door business

division, 41% in the Seat business division and 32% in the

Drives business division.

In 2016 secondary materials broke down across the overall

use of materials as follows:

Secondary raw materials in Brose products

Material Use of materials in tons

Share of second-ary raw materials

in tons

Steel 407,692.54 179,384.72

Plastic 79,107.56 23,732.27

Aluminum 24,219.45 14,531.67

Copper 3,872.98 1,665.38

Sum 514,892.53 219,314.04

The rates for determining the share of secondary raw materi-

als are based on industry-wide standard values.

In terms of company policy we are always reducing damag-

ing environmental effects across the entire life cycle of our

door and seat systems as well as our drives. Our “Guide-

lines for environment, energy and occupational safety and

health” form the basis for this. When reducing damaging

environmental impacts the focus is on lightweight design

along with the corresponding savings in energy and re-

source consumption during the service life of our products

once they reach the consumer.

To keep the ecological footprint of our products themselves

as well as our entire production operation as small as possi-

ble and reduce it even further, we have formulated specifica-

tions that must be implemented in specific periods.

For example, the carbon footprint – i.e. product-relat-

ed CO2 emissions – is scheduled to decrease by 11,000

t in the three business divisions. We introduced mea-

sures in late 2016 to ensure this. Our goal is to be-

gin implementing these measures in December 2018.

These include lowering material and energy usage,

achieving weight savings and reducing hazardous sub-

stances and emissions in general. These figures can be pre-

sented as CO2 equivalents. Among other things, an award

we received in 2017 is proof that our efforts are bearing

fruit: Brose’s Würzburg location won the “Main-Franconia

Ecological footprint of Brose products

Sustainability Award (Figure 8). This award recognizes

measures to ensure sustainable management implemented

within the company.

8. Main-Franconia Sustainability Award 2017

7. Use of secondary raw materials for products in 2016

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To reduce emissions in the vehicle operating phase we

are using newly developed material composites to lower

the weight of our products among other efforts. Our Seat

division won the Gold “Materialica Design and Technology

Award” in October for a technology known as organo sheet –

a fiber-reinforced thermoplastic. We supply the organo sheet

rear seat load-through for the Land Rover Discovery; series

production launched in late 2016 in Coburg. This product is

38% lighter than steel load-throughs. The “3rd generation

lumbar adjuster” is another system component; it weighs

about 32% less than its predecessor model.

We use weight-optimized parts for cooling fan modules,

drive actuators, power braking systems, power steering

motors, HVAC blowers and window regulator motors in the

Drives business division. This reduces vehicle fuel consump-

tion, thereby conserving resources and reducing harmful

emissions. We have been using extremely energy-efficient

transport systems in the Door business division’s intralogis-

tics since 2016: this new shuttle conveyor system works in

the new assembly lines and saves around 95% more energy

compared to the chain conveyor that was previously used

(Figure 9).

Furthermore, retrofitting drive production equipment has

enabled us to shut down the conveyors automatically, seg-

ment by segment. This results in an annual energy savings

of around 37,000 kWh and, in turn, a 20 t reduction in CO2

emissions.

Supply chain and customers

9. Annual power consumption

shuttle conveyor system vs. chain conveyor system, by system in kWh

25,000

20,000

15,000

10,000

5,000

0

Chain conveyor system Shuttle conveyor system

20,613

1,072

94.8%

Energysavings

The Brose Group also participates in official audits and certi-

fications. Our certified management systems for energy and

the environment assure compliance with the relevant, indus-

try-specific, environmental requirements in product design

and manufacturing. This not only enhances the credibility of

Brose products, it also makes them comparable by interna-

tional standards in terms of their relevancy to the environ-

ment.

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Supply chain and customers

Since the Brose Group does not deliver directly to consum-

ers, there has not yet been a need to recover product pack-

aging. To reduce waste as much as possible, 95% of deliv-

eries to customers are made using reusable containers that

Packaging recovery at Brose: Reusable instead of non-reusable

seamlessly reenter the logistics process. This means that

these containers and packaging materials are not disposed

of as waste.

Smooth procurement logistics are a top priority for our com-

pany as a tier 1 supplier. Every day around 350 suppliers

send production materials to Brose locations in Europe.

We bundle main leg shipments at central transfer hubs in

Germany and the Czech Republic. From here the freight

continues to European Brose plants.

We rely on premium quality suppliers and set high standards

for purchased parts to exceed our customers’ expectations.

Before awarding any contract Brose ensures that suppliers

are capable of manufacturing the product in question. Once

a contract has been awarded, a progress check is conduct-

ed with a defined prioritization. Suppliers are then rated

when a series starts. We review compliance with our quality

requirements for the products and delivery by external par-

ties. Our guidelines are aligned with those of the automotive

industry in accordance with IATF 16949 of the International

Automotive Task Force. The objective of this working group

comprising representatives from carmakers and automotive

associations is to improve product quality.

Our goal is zero-defect production based on the principle of

avoiding errors. Suppliers must provide detailed documenta-

Supplier management: High quality, good partnerships

tion of their quality management measures. This can include

initial sample documents, proof of qualification and requalifi-

cation and the corresponding prototypes.

We strive for positive, collaborative partnerships with all of

our suppliers, a consistent quality management system and

continuous improvements to processes and products.

We use audits to ensure our suppliers have implemented ef-

fective management systems (ISO/TS 16949). The validity of

the certification is reviewed on a regular basis and consid-

ered in the supplier rating. During the 2016 reporting year,

we completed 113 audits with potential suppliers and 127

audits with established series suppliers.

The Brose supply chain

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The Brose Group values consistent communication with

suppliers and customers and works hard to maintain the

best possible business relationships, for example by con-

ducting regular supplier surveys. We show our appreciation

for outstanding suppliers on a regular basis with Supplier

Supply chain and customers

Quality thanks to communication: Stakeholder engagement in purchasing

Awards and Key Supplier Recognitions. We use supplier

dialog and supplier self-assessment at fixed intervals to

determine whether our vendors continue to meet Brose’s

high standards.

Around 15,000 suppliers from 49 countries throughout the

world deliver products to the various locations of the Brose

Group. During the 2017 fiscal year we procured 62% of

goods and services from suppliers in Europe, 22% from the

NAFTA region and 16% from Asia. Our suppliers’ share of

value added is about 60%.

The localization rate is 89% in total: we obtain this share

of the procured goods and services from the respective re-

gions. This is just one of the ways we strengthen local econ-

omies and optimize transport routes. It also helps us create

and preserve jobs and solidify local infrastructures.

Brose values local suppliers – throughout the world

10. Share of procurement volume and localization rate

by region

Asia

Brazil

Europe

NAFTA

ShareProcurement

volume

62%

22%16%

1%

93.0%

82.3%

59.6%

85.8%

Localization rate

At Brose our approach is to map the entire production and

product life cycle in the most ecological way possible. Our

environmental management system is based on the ISO

14001 standard.

And we have the same high demands of our suppliers: the

only way for our products to truly be “green” is by ensuring

that the entire supply chain meets ecologically tenable and

coherent criteria.

Supplier assessment in consideration of ecological aspects

We perform a specific review of ecological criteria at all of

the suppliers and service providers we designate as envi-

ronmentally relevant. We require certification in accordance

with ISO 14001 from all of our galvanizers. Valid certificates

are requested on a regular basis. Environmental aspects are

an established component of our technology audits. This is

why we evaluate the ecological capability and performance

of over 100 suppliers each year.

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Supply chain and customers

The Brose Group has a global Code of Conduct with defined

rules of behavior that are binding for everyone. We respect

legal regulations and moral principles – these values are a

fundamental part of our supplier management. The Code of

Conduct can be accessed via the web at https://www.brose.

com/mx-en/company/code-of-business-conduct/.

We always review every new supplier’s work practices. We

use the supplier onboarding process, supplier self-assess-

ments and evaluations for this purpose.

In the spirit of our Code of Conduct and company princi-

ples we encourage employees to exercise their freedom of

association and engage in collective bargaining. These

principles apply in the same way to every vendor the Brose

Group works with.

We have high expectations of ourselves and our suppliers

when it comes to employment conditions. To our knowledge,

none of our vendors tolerates child labor or dangerous work-

ing conditions for young people. Similarly, we work exclu-

sively with suppliers we know manufacture in their business

locations worldwide without the use of any forced labor or

mandatory work. Moreover, we are unaware of any incidents

in which our suppliers have not met our ethical and moral

principles.

We anchored these principles in our “Global Terms and Con-

ditions of Purchase” (concluded with 83% of all production

material vendors in 2017) and in our supply contracts. Our

suppliers are required to maintain socially adequate work-

ing conditions and to request this of their vendors as well.

Our “Global Terms and Conditions of Purchase” are available

on the Internet at https://www.brose.com/de-en/purchasing/

general-terms-and-conditions-of-purchase/.

Validation of new suppliers with respect to work practices, human rights, protection of children and young adults and forced labor

The Brose Group has a global Code of Conduct with defined

rules of behavior that are binding for all employees in the

company. The code outlines standards that Brose uses as a

cornerstone for ethnically responsible behavior.

Objectives of the Code of Conduct include mutual respect,

fairness and honesty in personal interactions with co-work-

ers and business partners. The code applies at all of our

locations worldwide and for all cultures and value systems.

The Brose Code of Conduct aims to achieve humane conditions

Employee and supplier adherence to the code is a matter of

principle for the Brose Group, as is respect for human rights.

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4. Environment

Any type of industrial production poses myriad challenges to

modern businesses when it comes to environmental protec-

tion and responsible handling of finite resources. The Brose

Group introduced environmental standards as early as

twenty years ago and has continued to develop them ever

since. Issues like environmental protection and the conser-

vation of raw materials have a high priority here at Brose,

also in light of our over 100-year-long company history. We

use an environmental management system based on inter-

national standards.

As a family-owned company, we act with foresight and sus-

tainability in mind. Lightweight design is a key topic.

And efficient components such as electric motors and drives

can ensure fewer vehicle emissions while reducing end-user

energy consumption regardless of the type of drive in use.

When it comes to materials, Brose considers the carbon

footprint from raw material extraction to recycling. We also

test multimaterial systems, recyclate granulate, biopolymers

and natural fiber-reinforced composite materials.

We developed our own method of determining the CO2 emis-

sions our products generate throughout their entire life cycle.

We also determine the share of reusable components in our

products. Minimizing the use of resources is another one of

our key objectives. In addition, we make efforts to bundle

transports, e.g. including materials and products.

Our goal

The Brose Code of Conduct states our objective as a com-

pany to continually contribute to the steady improvement of

the ecological efficiency of our business. The environmen-

tal management system we use performs a valuable ser-

vice here. Firmly established product development targets

include environmentally friendly design, technical safety

and health. Our annual certification according to DIN EN

ISO 14001 shows how efficient our environmental manage-

ment system is in all of the production locations of the Brose

Group.

To improve the energy efficiency of our production and infra-

structure, we have also introduced in select locations an

energy management system that is certified according to the

requirements of the DIN EN ISO 50001 standard. We will

expand the system to the locations in Bamberg, Coventry

(Great Britain), Prievidza (Slovakia) and the Shanghai plant

by the end of 2019. We publish the respective certificates on

our website.

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Environment

Service life parameters

Type of fuel Gasoline

Useful life 200,000 km

Heating value of super unleaded gasoline

32.60 MJ/l

Fuel reduction coefficient of a gasoline engine

0.004 l/(100 km*kg)

Emission factor of gasoline 2.85 kg CO2/l

1. Basis of calculation for energy savings potential during service life

We are currently working on achieving a 5% reduction in our

carbon footprint at our locations. In December 2016 we de-

fined measures that should enter into effect by late 2018.

We also aim to reduce product-related CO2 emissions in the

three business divisions by 11,000 t during this period.

Another key issue for Brose lies in reducing our “water foot-

print”. Potable water is an extremely valuable resource we

Responsible use of resources: Energy, raw materials, carbon footprint

need in our production processes. This is why we began

building a system in March 2017 that pursues objectives

aimed at cutting water consumption. Just like our carbon

footprint we want to visualize the potential that a reduction

in water consumption can offer our business. We follow up

on these actions internally with a “Water Saving Actions”

report.

To calculate the reduced energy requirements in the busi-

ness divisions Brose uses a template for ecological product

evaluation based on the company’s own Brose Norm BN

590020. This norm features a simplified estimate of impact

in accordance with ISO 14040 et seq.

Using the Brose guidelines we defined the calculation fac-

tors listed in Table 1 to demonstrate energy savings in pro-

duction and during the consumer service life due to lower

product weight.

To present the reduction in energy requirements we select-

ed products from 2016 as examples and compared them to

their predecessor models. We also created a comparison of

energy requirements that we calculated using the Ecological

Product Evaluation. We used this to determine the difference

and calculated it using the construction volumes for one

year. To ensure a cohesive approach we looked at energy

consumption across the entire product life cycle (exclusive

end of life).

For example we developed a new basic latch in the Closure

Systems product unit. It weighs 540g. Its predecessor

weighed 810g. This weight savings had a positive impact on

fuel consumption in the vehicles that feature the latch.

While the new basic latch has a poorer energy balance in

manufacturing and annual production requires 116 GJ more

than the previous model, a closer look at the service life over

a useful life of 200,000 km indicates a total energy savings

of 36,981 GJ/year.

Another example is a door module from the Door business

division. This product is entering series production featur-

ing a carrier plate with a significantly reduced wall thickness

of 1.4 mm. The comparison model had a wall thickness of

In detail: Reduced energy demands in the business divisions

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1.8 mm. Making the wall less thick enabled developers to

achieve a weight savings of 446g in the new door module.

The new model requires less energy in manufacturing and

during the product’s service life than the comparison model

does. Thus, using less material can decrease energy con-

sumption both in production and during the service life of a

product once it reaches the consumer.

Projecting this onto a production year, this results in a total

savings of 25,043 GJ. 21% of the reduced energy consump-

tion is associated with manufacturing the new door module

compared to its predecessor. 79% of savings is achieved

during the product’s service life.

We manufactured around 6.3 million spindle tilts in the Seat

business division in 2016. Our new product development re-

sulted in a weight savings of approximately 50% compared

to the previous product (230g). Projecting this onto a pro-

duction year, this results in a total savings of 552,195 GJ/

year. 91% of the energy savings is achieved during the prod-

uct’s service life.

The Drives business division achieved a targeted reduction

in its energy requirements in 2016 by increasing the share

of lightweight window regulator motors in the entire Brose

scope of delivery worldwide. The reduced energy require-

ment was determined by comparing the new product to its

predecessor.

Compared to the reference product the new product de-

velopment yielded a weight savings of approximately 25%

(151g). Projecting this onto a production year, this results in

a total savings of 597,972 GJ/year.

Environment

2. Reduced energy requirements of selected projects

in MJ/product, by business division

800

700

600

500

400

300

200

100

0

Manufacturing

Service life

Reference model Reference model Reference modelOptimum model

Optimum model

Optimum model

Door module Latch Seat tilt adjuster

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Environment

Our goal is to reduce our annual energy consumption by

1.5%, thereby simultaneously cutting greenhouse gas (GHG)

emissions. Absolute values based on emissions in 2014 are

defined as target figures.

Many factors influence energy consumption and the result-

ing CO2 emissions – including system utilization, product

portfolio, production technology and weather conditions.

This is why we use separate, successfully implemented pro-

cess and system-related measures to assess the reductions

in GHG emissions.

In light of the various environmental protection and efficien-

cy measures outlined above, Brose is committed to sustain-

ably and permanently reducing additional GHG emissions

beyond CO2.

This applies in particular to volatile organic compounds

(VOC) and chlorofluorocarbons (CFC). For over two decades,

Brose has exclusively used a low-emission cathodic dip

painting (CDP) method for coating its seat structures with

water varnishes that have solvent concentrations far below

2%, for example. The unavoidable VOC emissions that result

in the process are recombusted in all of our European loca-

tions.

We have also continuously improved the degree of efficiency

of this painting process. The CDP system we will set up at

our plant in New Boston (USA) in 2019 features this technol-

ogy. This is important to us as part of our corporate strategy,

even though there are no associated regulatory requirements

in the US. The entire process is neutral in terms of nitrogen

dioxide emissions. Therefore, what would normally be an

obligatory disadvantage of recombustion technology no lon-

ger exists.

Measures for reducing greenhouse gases

Environmental protection and responsible treatment of re-

sources are firmly anchored in the Brose corporate strategy.

As previously outlined in sections 4.1 and 4.2, our energy

management system ensures improved energy efficiency

Energy use and emissions:Efficiency is the main objective

and helps us reduce our level of energy consumption and

the associated costs.

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30

Environment

In 2016 total energy consumption among all Brose locations

was 1,389,029,034 MJ. This includes consumption of energy

sources such as electricity, gas, district heating and heating

oil that we need for our manufacturing processes and for our

administration buildings.

The main type of energy Brose uses is electricity (55%), fol-

lowed by gas. The majority of gas consumed goes to our

production processes and paint finishing systems.

We operate a combined heat and power plant (CHP), where

we generate part of our electricity ourselves and feed excess

power and heat into the local public grid. In 2016 we fed

3,965,036 MJ of electricity and 62,483,112 MJ of heat into

public supply networks in this way.

Our energy consumption from various sources

3. Consumption in 2016 in kWh, by energy type

Electric power

Natural gas

District heating

Fuels

33.4%

55.1%

7.5%

4.0%

211,712,390

128,406,456

28,816,701

15,202,270

The service life of our products is a key aspect of our energy

efficiency developments and measures. Supplier manage-

ment paired with the high demands we place on our sup-

pliers enable us to positively influence the amount of energy

consumed by the deliveries and services we receive. We use

the same approach for capital goods and transport and dis-

tribution of goods.

Figure 4 shows the amount external energy consumed in the

respective areas. The basis for comparison is the ton CO2

equivalent.

External energy consumption

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31

Environment

kWh MJ CO2 in t

Power 2,135,502 7,687,807 1,281

Gas 679,471 2,446,096 137

District heating 225,000 810,000 26

Sum 3,039,973 10,943,903 1,444

5. Energy savings thanks to efficiency measures in 2016The energy intensity of the Brose Group is 351 kWh/

thousand euros. We believe this ratio of energy consumption

to plant costs is relatively low.

We were able to achieve significant savings overall in 2016

thanks to efficiency measures (see Table 5).

4. Externally energy consumed in 2016

using the ton CO2 equivalent.

Use of products sold43,257,002

Received deliveries and services2,434,165

Waste generated during operation2,864

Business travel29,902

End of life treatment of products sold

31,768

Downstream transport and distribution 38,316

Employee commutes 52,242

Capital goods79,115

Upstream transport and distribution85,907

Processing of products sold

209,167

1.14%

Streamlining energy-intensive processes

5.27%

93.59%

0.17%

0.08%

0.19%

0.45%

0.07%0.11%

0.06%

0.01%

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32

Environment

Most of the efficiency measures we implemented in 2016

were in cross-sector technologies deployed across various

manufacturing processes, such as compressed air, lighting,

cooling or ventilation. Alongside the successive moderniza-

tion of our lighting equipment we also replaced compressed

air generating equipment with more efficient systems. Most

of this equipment features heat recovery systems and is con-

trolled by intelligent compressor controls. We are increasing-

ly replacing incremental controls in ventilation systems with

frequency controlled drives, which enables us to operate

them based on our actual needs.

In addition, when procuring new systems we ensure that

they meet our high environmental and energy efficiency

standards. Our technical specifications always include our

internal Production Equipment Specifications “Work Safety

and Environment – BN 589580”, thereby firmly integrating

these environmental and energy efficiency standards in the

procurement process.

For example, we rely on efficient servo technology when pur-

chasing new plastic injection molding systems. Compared to

conventional hydraulic technology, this step alone can save

up to 30% more energy. We also optimized existing produc-

tion facilities during the reporting year, resulting in even more

efficient use of energy.

One of the most important approaches we take to reduc-

ing energy consumption and CO2 emissions is the contin-

Efficiency measures for reduced energy consumption

uous improvement of our logistics processes. Higher pack-

ing densities enable us to lower the number of trips made,

thereby reducing our need for fuel. Organizational measures

like bundling continuous runs prevent inefficient, half-empty

trips. We distributed these improvements across various in-

dividual measures to achieve savings of 303 t of CO2 emis-

sions in 2016.

Aspects like material efficiency, process control and produc-

tion technology are becoming more and more important for

Brose. One example of this is the systematic improvement

of our standard component, the window regulator drive. The

electronics are integrated into the gear housing in the new

generation (see images below). Plastic is being used more

and more often instead of steel. This reduces package space

and slashes the weight of the component by 25%.

Our goal is to influence emissions from our supply chain pro-

cess for the first time during the target period from 2016 to

2018. We plan to reduce CO2 emissions from energy use by

more than 4,000 t. Until now we have achieved these savings

through joint efforts to optimize transport processes. The

Brose CO2 balance is based on the international Greenhouse

Gas Protocol standard. Emissions comprise:

Greenhouse emissions: Reduction is the long-term objective

– Direct emissions from oil and gas consumption along with

the Brose fleet and Brose Flugservice GmbH (Scope 1)

– Indirect emissions from generated power and district heat-

ing (Scope 2)

– All additional, indirect emissions from manufacturing and

transport processes in the supply chain and other indirect

emissions arising through the use of our products or waste

disposal. This also includes emissions generated during

business travel (Scope 3).

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33

Environment

The CO2 equivalent for Scope 1 and Scope 2 reporting is cal-

culated by multiplying primarily local emissions factors with

the computed fuel consumption. In certain locations we also

use factors from the Intergovernmental Panel on Climate

Change (IPCC) database.

The CO2 equivalent for the Scope 1 emissions from all of

the Brose Group locations in the 2016 fiscal year is 34,860 t.

The CO2 equivalent for the Scope 2 emissions in 2016 was

68,699 t.

In detail: Scope 1 and Scope 2 emissions both rose in 2016

compared to 2014, by 14% and 12% respectively. This rise

should be seen in the context of a growth in sales of +16%,

meaning it was actually under-proportionate. Due to a lack

of data from 2014 we used the location-based method for

calculating Scope 2 emissions.

6. Scope 1 emissions 2016

ton CO2 equivalent

17,581

2,688

3,137

4,3264,592

1 Brazil0 Japan

7 Hungary21 India

29 Portugal

South Africa 29Sweden 33

Sweden 141

Russia 149

Belgium 167

Spain 304

2,536 Rest

Slovakia 306

641 Mexico

708 China

Germany

United Kingdom

USA

Canada

Czech Republic

Rest (under 1,000)

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34

Environment

We include local emissions factors in our calculations of

emissions from purchased energy. The total amount of

Scope 2 emissions in the Brose Group broken down by per-

Emissions from generating purchased energy

centage is 27.9% for the eight locations in North and Central

America, 39.5% for six Asian locations and 32.6% for Europe

(this also includes Brazil and South Africa) with 25 locations.

7. Scope 2 emissions 2016

ton CO2 equivalent

The CO2 equivalent for all Scope 3 emissions from the Brose

Group locations in the 2016 fiscal year is 46,220,448 t. Most

of our Scope 3 emissions are associated with the use of our

products in our customers’ finished products. We consider

the following factors when determining these Scope 3 emis-

sions: useful life, drive type and part weight.

For decades lightweight construction more than anything

else has shaped our identity as proof of our development

Emissions from the downstream value chain

expertise. Lightweight design is absolutely essential to fur-

ther reduce emissions during the service life of fuel-powered

or electric vehicles. The positive effect can be demonstrated

in figures: in 2016 advancements in our products enabled us

to help bring about a CO2 reduction of over 87,000 t during

the useful life of our products. The CO2 savings is associated

with the lighter products we sold during fiscal 2016.

18,121

26,310

China

Germany

USA

Mexico

Canada

Rest (under 1,000)

United Kingdom459

437

279

275271

244

198

194

186

121120

115

Belgium

Japan 58Sweden 8

Thailand

Hungary

Russia

India

Portugal

Italy

SlovakiaSpain

South Korea

Brazil

South Africa

6,457

3,434

9,248

2,965

2,164

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35

Environment

The intensity of GHG emissions in the Brose Group is report-

ed annually in the Carbon Disclosure Project.

Determining the intensity of GHG emissions

Intensity quotient Value Change vs. previous year Reason

t CO2 /million Euros in turnover

21.16 - 12.6% Increase in the share of renewable energies for electricity purchases

t CO2 /employee 5.12 - 13.1% Increase in share of renewable energies and growing number of employees

t CO2 /MWh 0.35 - 17.9% Increase in the share of renewable energies for electricity purchases and rising energy con-sumption

Three different intensity quotients are provided.

Brose is committed to further reducing greenhouse gases

and harmful emissions beyond CO2. This applies in partic-

ular to volatile organic compounds (VOC) and chlorofluoro-

carbons (CFC).

CFC-containing refrigerants are chiefly used in climate

technology, for compressed air dryers, cold chambers and

recooling plants as well as for “small systems” such as re-

frigerated cases, beverage dispensers or water coolers. Our

goal is to gradually replace the refrigerants needed for this

Long-term objective: Reducing and replacing ozone-depleting substances

equipment groupwide with climate-friendly alternatives or

different technologies. In 2016 the amount of partially ha-

logenated refrigerants in circulation in the Brose Group was

11,725 kg.

In some locations volatile organic compounds (VOC) are

emitted when coating parts for seat adjuster systems. To

keep these emissions as low as possible, we will be using

new, water varnish systems with solvent concentrations of

just 1-2%.

Clean air measures go hand-in-hand with other process im-

provements. One example of this is the cathodic dip painting

line we commissioned at our Coventry plant in 2017. It is the

first system in the Brose Group to fully refeed waste heat

generated from thermal recombustion back into the process.

Moreover, treatment of waste gas ensures that no addition-

al sulfur dioxide (SO2) and nitrogen oxide (NOx) emissions

are generated to feed heat to the dryer or for process water

heating.

Reducing air emissions with intelligent processes

9. Cathodic dip painting system at our Coventry plant

8. Intensity quotient of GHG emissions in 2016

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36

Environment

10. High-bay warehouse in Ostrava with 10,000 storage spaces

This heating concept, which Brose developed together

with our suppliers, is scheduled to be transferred to all new

systems, including those in places where recombustion is

not required by law – like our New Boston (Michigan, USA)

location.

Right now four out of seven cathodic dip painting systems

are equipped with thermal recombustion technology, reduc-

ing the maximum likely solvent emission rate by 48t/year.

Established in 2004, the Brose production facility in Ostrava,

Czech Republic is one of our lead plants. Brose has its own

press shop there along with an acoustics center and a paint-

shop. Seat structures, electric motors and drives and closure

systems are manufactured in Roznov. We supply over 30

OEMs and suppliers worldwide from Ostrava. The common

seat platform for BMW and Daimler – one of the most mod-

ern on the market today – is manufactured here, for instance.

Brose deployed a new logistics concept in Ostrava in 2014 that

sets standards worldwide. The concept aims to optimize energy

consumption with highly efficient processes. General contractor

SSI Schäfer realized the project: SSI Schäfer impressed Brose

with its single-source material and information flows and the

implementation of the SAP EWM logistics solution.

The material flow starts with storage in the high-bay ware-

house. Materials are transported to the repacking area on

demand and then sent to the automated small parts ware-

house. They are then taken to the tugger train stations as

required. From here they are transported to production on

board tugger trains.

The plant receives parts and materials from 366 suppliers

and during peak times employees unload up to 65 trucks via

seven ramps daily. The conveyor technology can store up to

180 heavy load containers per hour in the five-aisle high-bay

warehouse.

The high-bay warehouse has 10,000 storage spaces. From

here the materials are distributed on demand. The bridge ei-

ther leads to production or the depalletizing robot. Following

the fully automated depalletizing process, the mini load con-

tainers are stored in an automated small parts warehouse

Transport and logistics: State-of-the-art intralogistics in Ostrava

with seven aisles and 23,500 storage containers in the most

space-saving way possible. Storage and retrieval systems

with energy recovery systems ensure that the handling pro-

cess is fast and energy efficient.

At the heart of the plant is the innovative tugger train solu-

tion, which almost completely eliminates forklifts in the plant

– this solution is the only one of its kind worldwide. Small

parts are ready for transport in the four stations using a

practical and fast drive-through loading system. The tugger

trains run according to a schedule – on average, a tugger

train leaves a station every four minutes. This ensures opti-

mal material supply in production. Employees do not handle

the mini load containers until they reach the assembly line

– this signals the end of the automated process. All in all,

Brose has developed a forward-looking logistics solution for

material and information flows in Ostrava. The modular solu-

tion components will also be rolled out at other production

facilities in the future.

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37

Environment

At Brose we try to avoid generating waste whenever possi-

ble, which is why we use reusable packaging that is returned

to us for shipments. However, since waste cannot be avoid-

ed entirely, we separate it by type in our locations to ensure

effective disposal and recycling. The waste generated in our

locations comprises: scrap for recycling, household or com-

mercial refuse, metal waste (scrap) and special waste.

We comply with reporting regulations. Documenting waste

paths is designed to ensure that waste is transported away,

recycled or disposed of in accordance with legal require-

ments. We have valid, written permits for waste disposal.

Waste: Avoid, prepare, dispose of professionally

When selecting disposal companies we consider legal

requirements, existing permits and completed service

provider audits. Waste is almost exclusively sent to local

disposal specialists. Waste is never transported across

borders and residual materials are never exported.

11. Amount of waste types in 2016

in t, by region

60,000

50,000

40,000

30,000

20,000

10,000

0

Scrap for recycling/energy recovery

Household/commercial refuse

Metal waste (scrap) Special waste

50,4

12

2,25

3

3,56

3

6997 96 44267

2322 9 19

Europe

North America

Latin America

Asia

Africa

8,21

7

5,59

9

804

3,74

3

10

13,3

59

917

1,49

4

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38

Environment

Brose hires external companies to dispose of the various

types of waste in a professional manner. We select these com-

panies based on our company policies and only award the or-

der when we have deemed the company to be suitable and

reliable. Of the selected disposal companies, 95.5% are waste

disposal specialists or companies that meet the necessary le-

gal requirements for recycling waste and have the necessary

permits. Only 4.5% of the disposal companies that comply

with the legal requirements do not have fully documented

proof of this compliance.

Disposing of hazardous and non-hazardous waste

We offer additional environmental engineering consulting for

disposal companies: the Brose environmental protection

specialist advises the external company on all questions re-

lated to environmental protection, waste disposal, soil and

water conservation, the release of pollutants and handling

hazardous materials.

12. Documented waste paths in 2016

by region

120

100

80

60

40

20

0

Seamless documentation for every type of waste Documentation available but with minor flaws

Europe North America Latin America Asia Africa

96%

4%0% 0% 0%

100% 100% 100%

33%

67%

The Brose Group records all incident-related pollution. No

significant pollution due to waste, chemicals or uncontrolled

emissions released into the environment was reported

Pollution

during the reporting period. Consequently, no fines or oth-

er non-monetary sanctions were issued against the Brose

Group.

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39

Environment

Biodiversity – the science of varied lifeforms – governs the

protection of ecosystems on land and in the water. The pro-

gressive fragmentation and destruction of natural habitats is

considered to be the greatest danger for the biological diver-

sity of our planet. Biodiversity is also viewed as one of the

most essential foundations for human welfare.

Scientists see negative influencing variables on biodiversi-

ty among other things in soil sealing, climate change, in in-

creased concentrations of CO2 in the atmosphere and in high

levels of nitrogen in our waters. The latter is not only caused

by over-fertilization, but also by vehicle emissions.

Biodiversity: Having a positive impact

As a globally operating company, it is important to us

to have a positive impact on these influencing vari-

ables. For Brose the primary course of action is not

only to achieve lower CO2 emissions in our loca-

tions, but also to reduce the weight of our products.

After all, if vehicles weigh less, then CO2 and other harmful

emissions may also decline during the life cycle in which our

products are integrated.

Our “Guidelines for environment, energy and occupa-

tional safety and health” document our commitment as a

globally operating company to utilizing environmental-

ly-sound technologies. Our responsibility takes into account

the entire life cycle with regard to the impact of our products

on the environment. Our guidelines are binding for all Brose

Group locations and are supplemented and/or concretized

Environmental regulations: Violations of applicable laws

through the formulation of location-specific environmental,

energy and occupational safety programs.

We monitor compliance with all rules and laws related to the

environment and work to counteract violations. No fines or

other non-monetary sanctions were issued in 2016.

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40

Environment

Total water consumption during the 2016 fiscal year rose

from 652,604 m3 to 736,359 m3 compared to the year prior.

Water consumption per employee and workday is approx-

imately 130 liters. Water is obtained as well water (38.4%)

and municipal water in potable quality (61.6%).

Brose uses fresh water to cool production processes, as

process water in surface technology, to apply cooling lubri-

cants in washing systems, to water green spaces, in the can-

teen and in break rooms and for cleaning buildings.

We want to continue to reduce our demand for water with

a consistent water management system. Our focus lies on

water with high purity levels and processes that result in ef-

fluents with high levels of pollution.

This is why we began introducing a system from 2016 to

2018 that enables us to measure and evaluate our water

consumption along with measures for reducing it. This sys-

tem is designed to uncover the reduction potential of our

Water and effluents: Responsible treatment of the most important element

“water footprint” and visualize this information in the “Water

Saving Actions” report. Independently of this, our plants

were already focusing on water-conserving production

during the 2016 fiscal year.

At the process level, surface technology is the largest water

consumer in the Brose Group. It has a 98% share of our

process water requirement, which corresponds to 23% of

all fresh water needed. This is why we are concentrating on

reducing the amount of water obtained as well as effluent

levels in surface technology.

One example of our efforts in this area is the dramatic reduc-

tion of the specific water consumption of our 9-zone CDP

system, specifically due to recirculation, cascades, bath

maintenance measures and process control. The latest-gen-

eration system consumes 5.6 l/m2 of painted surface. The

effluents we treat in our own plants are always emptied into

the municipal sanitary sewers.

Brose uses a variety of sources for its daily water needs.

Sanitary and social services use over 62% of fresh water;

23% is used as process water for surface technology. We

use 13% of fresh water for irrigation and the remaining 2%

for cleaning and washing processes.

From fresh water to rainwater: Specific water removal

Well water is used almost exclusively for cooling purposes in

our German locations; it is led back to the ground water via

drainage shafts.

Brose uses well water to cool production processes at its

Coburg location. After cleaning it is led to the storm water

sewer in desorption systems.

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41

Environment

13. Total water consumption in 2016

in m3, by source and region

600,000

500,000

400,000

300,000

200,000

100,000

0

Well waterConsumed quantity

Fresh waterConsumed quantity

Total water consumption

0

270,

208

7,82

7

0 4,47

4

Europe

North America

Latin America

Asia

Africa

98,9

97

9,90

9 87,0

02

6,47

5

251,

466

521,

675

106,

824

9,90

9 91,4

76

6,47

5Brose has effluent treatment systems, but it does not have its

own water treatment systems. The reason for this is the posi-

tion of our locations where a well-developed municipal infra-

structure ensures the corresponding water treatment, thereby

enabling water to be returned to surface water. Our Quére-

taro Aeroporto location is one exception. Here effluents are

treated in the industrial park’s own effluent treatment system

Treated and reused water

and provided to the businesses located there again for reuse.

However, we are aware of our responsibility when it comes

to a resource as valuable as water and we are working hard

to conserve potable water as much as possible. At the same

time, we require more water for our production processes.

Total water consumption during the 2016 fiscal year rose from

652,604 m3 to 736,359 m3 compared to the year prior.

14. Water use in 2016

share of locations with implemented water savings measures

60

70

80

90

50

40

30

20

10

0

in appropriate scope

in planning

no measures

Europe North America Latin America Asia Africa

73%

27%

70%

50% 50%

67%

86%

33%

14%

20%

10%

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42

Environment

The Brose Group generated 773,103 m3 of effluents in 2016.

Due to the high water quality we can lead part of this back

into the storm water sewer either directly or following treat-

ment. More than anywhere else, this is possible in our Euro-

pean locations. The ground water the Hallstadt location

takes for cooling purposes is used in separate cycles and

monitored systems and can be reintroduced via drainage

shafts after use.

Effluents from paint finishing systems are treated in a batch

plant prior to being led into the sanitary sewer. We are in-

creasing our use of sand traps and gasoline traps to irrigate

our parking areas. To ensure smooth operation of these sys-

tems, we inspect them according to the same criteria in all of

our locations. The remaining water that is not led away via

storm water sewers or ground water is disposed of via the

public sanitary sewer system. These systems are subject to

effluent regulations in the respective municipalities.

We strive to keep the level of effluents our locations produce

to a minimum. And our plants have introduced a range of

methods of avoiding waste water.

Effluent discharge systems and water quality

15. Effluent discharge rates in 2016

in m3, by disposal type and region

300,000

250,000

200,000

150,000

100,000

50,000

0

Level of effluents in the storm water sewer

Level of effluents collected in the public sanitary sewer

Level of effluents reintroduced into the ground water

Europe North America Latin America Asia Africa

277,

548

189,

281

133,

797

13,8

13

64,4

92

0

8,65

4

3,43

5

0 0

76,0

73

35 4,65

5

1,08

0

240

We are unaware of any of our effluent discharge systems hav-

ing a negative impact on conservation areas or biodiversity.

We comply with regional regulations, usually exceeding them

with the Brose standard. We have no fines or other violations

of environmental regulations to report during the 2016 report-

ing period. Nor have we documented any internal violations

of such rules within the company. We monitor compliance

with the related legal requirements using our environment

and energy management system.

Fines and non-monetary sanctions

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43

5. People at Brose

Goal: Shared responsibility

We owe the market success and strong business growth of

the Brose Group to the inventiveness, innovative capacity

and technical expertise of our staff. A powerful focus on our

people and values has a lasting effect on our HR policy.

As a self-reliant family-owned company with more than 100

years of history behind it, our actions are characterized by

continuity and independence. The long-term, sustainable

orientation of our shareholders is also reflected in our people

and value-centric corporate culture and in our HR work. This

is expressed in the shareholder family’s willingness to put

the welfare of the company and its employees ahead of their

own personal interests.

Value-oriented HR work

Qualification and development, working environment and

social benefits paired with forward-thinking HR concepts

help us deploy employees where they are needed while giv-

ing them what they need to grow, enhance their loyalty to

the company and establish Brose as an attractive employer

worldwide.

We want to foster a diverse corporate culture and solidify a

common identity, which is why our HR department incorpo-

rates the values defined in the company principles in its HR

tools such as employee surveys, feedback discussions, per-

sonality profiles, orientation programs or leadership develop-

ment courses.

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44

People at Brose

Our company offers employees professional and customer

project manager career paths alongside the management

career path. The career path concept is permeable and can

be flexibly adapted depending on how participants devel-

op professionally: they can change paths at any time and

achieve new career goals. Our own development programs

for commercial employees and IT specialists complete the

set of career building blocks.

All employees receive regular feedback on their perfor-

mance to facilitate personal career growth. This feedback is

provided to all salaried employees in the scope of the annu-

al Performance and Talent Management (PTM) process. The

process includes objective agreements and meetings along

with performance appraisal and potential evaluation. There

is a simplified process for skilled trades.

The PTM process provides transparency about key play-

ers and high-potential employees in important positions in

administration and production in the Brose Group. Supervi-

sors work with the HR organization and employees to define

measures and development goals to allow their true poten-

tial to fully unfold in their new role. Progress in succession

planning and employee development is reviewed at least

twice yearly.

Employees who are interested in a specific position can take

the initiative and discuss the next steps in their career devel-

Varied career paths

Systematic employee development

We value employees who are willing to learn. A comprehen-

sive range of further education and training programs helps

all of our employee groups develop and grow both personally

and professionally. The range includes a variety of formats

such as on-site training courses, webinars and e-learning

courses for extending and building product, methodological,

leadership and language skills.

We also have a document library featuring around 600 train-

ing manuals and guides to encourage flexible, independent

study. In 2017 the average number of hours spent on further

education and training was 25.3 (indirect employees) and

5.1 hours (direct employees). Brose has not collected data

for direct and indirect employees based on gender to date.

Professional instruction in the workplace and participation in

e-learning courses also help ensure professional qualifica-

tion.

We prepare high-potential employees to accept major re-

sponsibilities in local, regional and global development pro-

grams as needed. These measures equip participants with

the skills they need to successfully take on further leadership

roles at Brose. Moreover, our family-owned company offers

committed employees further training opportunities through-

out their careers regardless of their level of education. In

fact, we offer over 450 training and qualification measures.

We also have local qualification programs, master tradesman

courses and master’s degree studies programs for full-time

employees as supplements to these measures.

In addition to all of these benefits, we also offer many differ-

ent health programs to keep employees physically and men-

tally fit – during their active careers and beyond. Salaried em-

ployees in our German locations can take advantage of what

is known as the advisor model as part of a part-time retire-

ment program. The program assists employees with their re-

tirement from work life by gradually reducing their weekly

working hours over the course of several years. An organized

transfer of knowledge and experience is also ensured during

this phase.

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People at Brose

opment with their supervisors or HR support officers. Similarly,

supervisors are responsible for using performance apprais-

al meetings to prepare development plans with employees,

which can help develop the necessary professional skills and

management expertise. Our managers also meet with HR sup-

port officers every year to perform a structured analy-

sis and discuss their employees’ qualification require-

ments. These employee discussions are an important

element both in scheduling training and development

measures and succession planning.

We believe that a solid career orientation is indispensable in

helping high school students transition effectively into their

new professional lives. This is why Brose targets young peo-

ple early on: job shadowing, events like “Girls Day”, “Girls for

Technology Camp” or “Brose Bamberg Meets Technology”,

information sessions at schools or career fairs – our instruc-

tors and apprentices are on hand with advice and practical

assistance to help facilitate career orientation.

Our corporate group offers young people challenging ap-

prenticeships that will provide them with long-term career

perspectives both here and abroad. Brose has offered ap-

prenticeships for over 90 years – today over 400 apprentic-

es and dual-track students are learning a new trade with us.

Nearly a quarter of these people work in our international

locations in the US, Mexico, China, Brazil, Canada, France,

Spain, the Czech Republic, Slovakia and Great Britain.

The range of apprenticeship occupations encompasses

nine industrial/technical and commercial vocations. This

includes – in combination with a corporate apprentice-

ship – dual studies programs offering Bachelor’s degrees

in mechanical engineering, electrical engineering, business

informatics or business administration and engineering.

Analogous to the dual-track studies program, we also offer

programs with universities of applied sciences with deeper

practical experience in electrical engineering and informa-

tion technology, automotive engineering, business admin-

istration and engineering and automotive and automation

technology and robotics.

Apprenticeship training: The foundation for the future

Brose is one of the founding companies behind the

“Michigan Advanced Technician Training” program.

The program was developed based on the German vo-

cational training standard and supported by the Ger-

man American Chambers of Commerce (GACC) and the

German Chambers of Industry and Commerce (IHK).

Brose is currently training 18 apprentices in total as

mechatronics technicians and technical product design-

ers in a number of locations. In 2017 the GACC recognized

Brose’s involvement with its apprenticeship award. It highlighted

the company’s innovative employee development framework

that opens up challenging career paths to young people.

Apprenticeship award in the US

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People at Brose

An apprenticeship at Brose is so much more than simply

learning a trade: we also encourage apprentices and de-

mand that they act in a team-oriented, responsible way. This

is one reason why we also offer regular language training

courses along with temporary assignments to Brose Group

locations in Europe and abroad that last several weeks

during the school break. What’s more, our apprentices in the

Brose Junior Company work on company-specific assign-

ments – an experience that helps them strengthen their pro-

fessional, methodological and social skills.

Performance and compensation

The German Vocational Training Association (DBA e.V.)

awarded us its “DBA-Cert Quality Seal” in recognition of our

company’s excellence in apprenticeship training. This con-

firms that our training processes are implemented in an ef-

fective, efficient way and that every employee involved with

training has a working knowledge of standards, guidelines

and methods. All topics are systematized with the goal of

making the training processes and methods simpler and

more efficient. Results are documented in a quality manual.

Recertification takes place every three years.

Consistent integration of new curricula

The Brose training concept consistently incorporates new

curricula into the apprenticeship program. We do this to fos-

ter high-potential professionals who can handle technical

and organizational challenges with expert skill and encourage

them to remain loyal to the company. Digital media, IT learn-

ing systems or learning with tablet computers are standard

elements of our training concept. Instructors receive parallel

training on how to deploy new media and hone their IT skills

so that they can create their own course content.

Strengthening interdisciplinary expertise

All of the companies of the Brose Group offer our employ-

ees compensation and additional benefits regardless of

employees’ gender, religious denomination, heritage, age,

disability, sexual orientation or country-specific characteris-

tics. Our compensation policy is based on the market value

of the respective job evaluation, which is determined based

on the Hay system, and the individual performance of the

person who holds the position.

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People at Brose

Each year comparison studies are conducted with the help

of an independent external service provider to define a

country’s market level and to determine appropriate and fair

basic wages and overall compensation packages. All em-

ployees receive compensation packages that are competi-

tive in the relevant markets in which they work.

The company’s financial situation and the employee’s indi-

vidual performance are used for changes in wages. At Brose

we use the annual objective agreement and performance

appraisal meetings for this purpose. Supervisors evaluate

their employees based on their performance and share con-

fidential feedback with them.

Around 8,300 employees (starting from a specific wage

group) and managers primarily from development and

commercial administration worldwide participate in the

objective agreement and performance appraisal process.

In 2017 around 72% of participants were male, while 28%

were female. Supervisors receive training in “leading with

objectives”. They arrange clear, unique, manageable and

motivating assignments and achievable results with their

employees.

With respect to gross annual income the income ratio of

women to men across all employee groups is just under

90%. Differences can be found in personal paths through

life and development (e.g. part-time employment), which all

have an impact on wages earned. The three main locations

in Coburg, Bamberg and Würzburg with a total of nearly

7,400 employees were used to calculate the income ratio.

Collective wage agreements apply directly to about 40% of

jobs at Brose. Only core staff members are counted here.

Fair wages

Contractually agreed or voluntary profit-sharing bonus-

es paid out to our employees depend on the results of

the corporate group and the respective business divisions

or regions and whether employees achieve their personal

objectives. Our company does not offer any stock-based,

long-term performance incentives.

Bonuses for business success

At its German locations in Coburg, Bamberg and Würzburg

and the regional headquarters in Detroit and Shanghai Brose

also offers a comprehensive compensation package that in-

cludes a monthly fixed salary and a variable, perfor-

mance-based remuneration component along with a variety

of additional benefits. This includes a company pension plan,

for instance. The plan is either insurance-based or structured

as a direct commitment depending on the country. The contri-

bution level depends on the employee’s own contribution or

income. Additional company benefits from Brose tailored to

the locations and/or plants can include hiring bonuses (“Bring

a friend”), anniversary bonuses, per diem and event allowanc-

es or supplying workwear and equipment. Company sports

programs, discounts on merchandise from the Brose company

shop and car and e-bike leasing offers can supplement any

benefits package offered by the respective location or plant.

Additional company benefits

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People at Brose

Good working conditions: Health and society

As part of a contemporary, internationally connected health

management system our family-owned company invests

in ergonomically optimized workstations, health-oriented

worksteps, numerous health programs, balanced, high-qual-

ity catering services and local and international sporting

events. This exceptional range of services is tailored to our

people’s needs and helps enhance our employees’ health

and productivity in administration and production – which is

becoming increasingly important now that people are work-

ing longer over the course of their lives. Preventative mea-

sures are the focus – both at work and outside work. They

promote the wellbeing of our employees and improve their

personal quality of life.

Additional key fields of action as part of our family-friendly

HR policy include in-house childcare, support for family

members who need special care and maintaining employ-

ability in light of demographic developments. Like our health

management program we also use structured communica-

tion and other methods of addressing employee groups in a

targeted way to increase acceptance and use of these ser-

vices. Additional campaigns and innovations allow us to

make sure that employees remain aware of relevant topics.

Global health management

Our company is always developing new, family-friendly,

employee-oriented HR concepts. These concepts have a

long-term focus, incorporating economic, social and de-

mographic trends. Whether internationalization, an aging

society, personalization or changing social values: the as-

sociated changes have a sustained impact on working envi-

ronment, collaboration and types of employment.

Brose has a number of options in its toolbox to face these

developments head-on. We increase employee retention

and work satisfaction, decrease absences and secure the

future viability of Brose as a company to recruit qualified

new employees.

Alongside the motivating working environment we call the

“Brose Arbeitswelt” we also offer flexible working hours

and a wide range of flex-time models. They not only help us

meet our business requirements, they also enable employ-

ees to balance their personal and professional lives.

Comprehensive programs that promote a good work-life

balance and a broad spectrum of health services are two

other ways of expressing our corporate culture and are an

essential element of our corporate strategy. Employee and

Family Services plays a key role here. It promotes family-

friendly HR concepts, offers personal consultations to our

employees, raises awareness to promote health-conscious

lifestyles and encourages active engagement and personal

responsibility.

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People at Brose

The Brose Kids Club is at the heart of childcare at Brose. It is

established at the headquarters in Coburg and in the largest

production facility in the Brose Group – Ostrava in the Czech

Republic. Around 7,000 people are employed in these two

locations alone.

Employee children from ages six to 18 can visit education

and childcare facilities in Coburg and Ostrava. The Kids Club

provides supervision for children in the afternoon, during

school breaks and in emergencies. Beyond childcare, edu-

cation is a primary objective: the Children’s and Youth Acad-

emy offers training courses for different age groups. The

Kids Club also offers dual-language care (English).

We even offer childcare for small children three years and

under. Full-time daycare is available in Coburg via cooperation

agreements with external service providers and in Ostrava in

Brose’s own Kids Club. Employees can also book care on an

hourly basis depending on their individual needs.

In addition to this, around 8,000 salaried employees in Ger-

many have taken advantage of the parental leave program

governed by local law. About two-thirds of these employees

were men. Virtually all employees returned to the company

when their parental leave was over.

Exemplary child care: The Brose Kids Club

More and more of our employees must now care for fami-

ly members with special needs. Our family-owned compa-

ny supports employees who take on this responsibility with

the “Care Network”, which offers contact and coordination

points to help them more effectively balance their work with

their need to care for their families.

The network comprises the company’s own Employee and

Family Services, volunteers, personally affected employees

and our medical team. It offers concrete help, enables em-

ployees involved in care to exchange experiences and raises

awareness among the workforce and managers of the chal-

lenges of caring for a loved one.

Employees can also take time off to care for family mem-

bers. In addition to legal provisions we also offer a care sab-

batical, our company’s own concept for periods of leave:

employees have the option of taking leave for a period of

four or eight weeks with alternative wage models in the

event of an acute care situation.

Care: A strong network

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People at Brose

Demographic change is not only apparent in our population;

it is also reflected in our workforce. The average age is al-

ready over 42 at our major plants in Coburg, Hallstadt and

Würzburg alone. More than 2,000 employees work there in

total, which constitutes over 85% of all production employ-

ees in Germany.

Although they belong to the segment of the population that

is particularly affected by musculoskeletal disorders, cardio-

vascular disease as well as colds and flu, production em-

ployees have so far made little use of the company’s own

programs. Now that people are working longer over the

course of their lives, maintaining their employability is one

of the central purposes of our occupational health manage-

ment system.

It is not just about health promotion measures alone. Em-

ployability means actively participating in social and work

life, and this also depends on the long-term relationship be-

tween a person’s skills and their work. This is why Brose

aims to maintain the ability to learn and health of the indi-

vidual – and increase awareness of the problems facing our

production employees with a targeted demographic cam-

paign. Beyond using the campaign to raise awareness and

holding annual health campaigns, we will also implement

the following measures to maintain the employability of our

employees in production and administration now that peo-

ple are working longer over the course of their lives:

– Fast and effective treatment of musculoskeletal disorders

in the company’s own health center by means of Medical

Training Therapy (MTT)

– Sport and health pass at our German locations

– Setting up working groups in specific areas of production

with employees whose performance is impacted by health

issues

– Increased use of job rotations in production to help our

production employees avoid unbalanced posture and re-

petitive strain

– Prevention of repetitive strain in production and admin-

istration with regular stretching and loosening exercises

– Information events on healthy eating, handling stress, pre-

venting addiction or quitting smoking

– Creating a balanced age structure within our workforce.

Keeping an aging workforce fit

Our goal is to prevent work-related accidents in production

and administration. Group-wide accident statistics consider

accidents involving all Brose employees as well as agen-

cy workers and temporary employees. The figures do not

include accidents involving employees from external com-

panies.

The number of reportable work-related accidents in 2016 is

shown in Figure 1. Accidents resulting in more than three

days of lost time are indicated as reportable. The provisions

set forth by the German professional societies are valid

group-wide. There were 225 such accidents in the group in

2016. In these figures 222 workers in plant functions and

three employees in the business divisions were affected,

while no employees in central functions experienced such

Work-related accidents

1. Number of work-related accidents >3 days in 2016

Europe

North America

Latin America

Asia

Africa204

11

2

71

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People at Brose

accidents. Most accidents occurred in Europe (204), while

only eleven were reported from North America, two from

Latin America, seven from Asia and one from Africa. There

were no fatal accidents in the Brose Group in 2016.

Key figures recorded include the number of reportable

work-related incidents per thousand employees in Figure 2

and the “Accident severity” (days lost/number of incidents)

in Figure 3.

The number of incidents per thousand employees (TMQ) is a

yardstick for measuring the frequency with which accidents

occur while the accident severity is used to determine the

average number of days lost due to incidents. The number of

incidents per thousand employees is determined for a rolling

12-month period. Part-time and full-time workers are evalu-

ated. Figures are not presented by gender, religion or ethnic

group.

The number of incidents per thousand employees is 12 for

the group as a whole. Europe exceeded the group average

with values between 19 and 23 incidents, while the remain-

ing regions had a maximum of five incidents per thousand

employees.

Accident severity in the group was 19.6. North Ameri-

ca experienced the highest severity level (43) and Afri-

2. TMQ3 2016

incidents per 1,000 employees, by region

Brose Group

Latin America

Africa

North America

Asia

Europe

30

25

20

15

10

5

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ca the lowest (0). Working conditions and preventative

measures are comparable in all of the Brose Group’s lo-

cations. However, accident rates and lost time tends to

be higher in Western countries. This has to do with dif-

ferent regional and social standards and cultural behav-

ioral norms, which can interpret the severity of an injury

in different ways.

3. Accident severity in 2016

number of days lost per number of accidents

43

10

1919

0

Europe

North America

Latin America

Asia

Africa

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People at Brose

Brose is an innovative employer. The progressive personnel

concepts at our family-owned company have received many

awards and regularly rank highly in external employer sur-

veys.

Brose has been named one of the top 100 employers in Ger-

many by students and graduates for years. Brose once

again ranked among the top 100 companies in the 2017

“Trendence Graduate Barometer”. The company ranked

91st in the “engineers” category and 95th in the “econo-

mists” category among 12,000 survey participants. Brose

placed 95th among the top 100 employers in the 2017 Uni-

versum Survey of over 9,000 engineers. For the third time in

a row, we were ranked in the employer branding survey con-

ducted by human resource consulting firm Randstad, plac-

ing 2nd in the automotive suppliers category. In China the

“Top Employer Automotive 2015” study by the international

Top Employers Institute ranked Brose as one of the best

national employers in the industry. The company scored

points with its exemplary working conditions, programs for

developing young talent and a systematic performance

management concept, all of which are aligned with the cor-

porate culture. Another award is the designation as a “MINT

Minded Company 2017”, which Brose received for its com-

mitment to fostering young academics with qualifications in

mathematics, information technology, natural sciences and

technology (MINT). The survey asked 17,000 MINT students

and graduates in the area to name their preferred employer.

Outstanding employer awards

Brose has conducted employee surveys for years. Solid stud-

ies document how satisfied employees are with their work-

place and how strongly they identify with the company. This

is why topics such as working conditions, management,

company principles and solidarity are at the forefront of these

surveys. Most of the surveys conducted in the past had a

regional focus. The first global survey was carried out in the

Brose Group between July 2015 and June 2016. Over 21,000

employees at 50 locations in every region were surveyed.

87% followed the call. More than 900 managers received

about 200 separate analysis reports for their area of respon-

sibility.

Regular employee surveys

About 3,200 measures were developed at locations through-

out the Brose Group in response to the survey. Main focuses

included working conditions and the FIRST company princi-

ples – in particular Respect and Success. Our employees

would like to be more actively involved in decision-making

and change processes. They also appreciate self-critical

root cause analysis and thorough error resolution. In addi-

tion, they want supervisors to identify work overloads and

take actions to achieve a good balance between work and

private life.

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People at Brose

Brose is always reviewing its range of voluntary social ben-

efits. We place special focus on aspects pertaining to family

friendliness. An audit performed by “berufundfamilie” pro-

vides valuable insight on how we can further develop the

programs we offer in this area. We have performed regular

recertifications with this partner since 2010 with binding ob-

jective agreements.

Competitions also offer important impetus for the contin-

uous improvement process. They help us see where we

stand compared to other companies. Awards such as “Fam-

ily-friendly company in Upper Franconia”, the “Success fac-

tor family” innovation award for our Brose Kids Club, “Help-

ing Hands” presented by the Bavarian Red Cross for our

involvement in helping employees care for family members

with special needs or the Corporate Health Award seal of

excellence for the exemplary range of services found in our

health offers are all proof that Brose is among the leading

industrial firms in Germany whose company health man-

agement program is structurally and strategically integrated

in its business processes and promotes an enterprise-wide

culture of health.

Social benefits in focus

Brose is also always expanding its range of voluntary bene-

fits tailored to the needs of its locations. Alongside our com-

prehensive health management system, our family-owned

company also offers employees a company-private pen-

sion plan among other benefits. We also offer car leasing,

which enables employees save taxes. Brose also launched

an e-bike leasing campaign for employees at its German

locations featuring the slogan “Keep fit, protect the environ-

Attractive benefits

ment and save money”. We work with a leasing partner to

provide the bikes to our employees free of VAT. They also

save taxes because the lease payment is deducted from

their gross pay. Our employees can lease up to two e-bikes

with a Brose drive for themselves and family members who

live in the same household. Employees have the option of

purchasing their bikes at their residual value when the term

of the lease expires.

Obligations arising from the pension plan for the Brose

Group worldwide were 486 million euros (according to IFRS)

as at 31 December 2016. Preparations are currently under-

way to provide basic financing for the pension obligations in

Germany as part of a Contractual Trust Agreement (CTA). A

coverage rate of over 50% is planned. Employer-financed

pension plans in Germany are carried out by means of direct

Pension plan

commitments, the amount of which depends on the selected

pension plan and employee group. Employee contributions

to company pension plans are financed from wages depend-

ing on the maximum legally permissible conversion limits.

The foreign pension plan model relies on a combination of

employee and employer contributions as part of a deferred

compensation plan featuring insurance-backed solutions.

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People at Brose

Corporate diversity

Our corporate group is present on virtually every continent.

Around 65% of our employees work in our foreign locations.

Together we currently represent over 80 countries with all of

their diverse cultures and value systems.

We view this diversity as an opportunity to learn something

new every day. It is accompanied by globally organized col-

laboration that also involves our international customers

and business partners. This requires openness, networked

thinking and action.

Diversity is also reflected in how we promote and develop

all of our employees – regardless of their age or gender. To

increase the percentage of women in technical areas in par-

ticular, Brose has spent years supporting measures that get

young women interested in technical career profiles early

on in life.

A selection of these activities ranges from career orienta-

tion initiatives for girls to internships or college or degree

theses for aspiring female engineers all the way to mentor-

ing programs that pair experienced women in management

positions with young female engineers. Both men and wom-

en can participate in our international “Talent Circle” devel-

opment program or our three-step career path concept to

support professional growth in responsible technical and

management positions.

An appreciation of “otherness” is a matter of course for us

and a key to global business success. We explicitly docu-

ment this in our company principles, in particular under the

principle “Respect”.

We value employees with a strong global orientation – a

valuable asset that enables them to collaborate well, un-

derstand their environment and act effectively. This includes

an understanding of other cultures and the ability to han-

dle ambiguity and diversity. Specifically tailored intercultural

training courses help employees act with confidence on an

international stage, free of any fear of contact or reserva-

tions in dealing with others.

Almost two thirds of all Brose employees work outside of

Germany. Every workday is international due to cross-

border and cross-language communication between loca-

A global team

tions and project teams. Many employees in development,

production and administration today constantly work in a

global network – within our company and with customers,

partners and suppliers. And more and more employees go

to foreign locations to work for a certain period of time.

Qualified employees can work in another country for any-

where from three to up to twelve months. We offer tempo-

rary assignments so that our employees can broaden their

professional, language and intercultural horizons while

transferring their knowledge to different regions. Longer for-

eign assignments are also possible.

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People at Brose

As a family-owned company accepting social responsibility

in the communities surrounding our global locations is a

matter of course. This is why Brose is involved in the areas

of sport, education, culture and society.

Sport requires talent, a willingness to do your best, ambition,

discipline, passion and team spirit. All of these characteristics

are in demand both in our company and in the automotive

sector as a whole. Our sport sponsoring efforts are directed at

attracting the attention of performance-driven and athletical-

ly minded people and recruiting them as Brose employees.

This is why we have sponsored basketball in particular for

many years now. This ball sport is highly dynamic and fas-

cinates viewers with intelligent interaction between talented

individual players. This fits well with our company. Our in-

volvement in the clubs in Bamberg, Bayreuth, Würzburg and

Coburg has helped make Franconia a bastion of profession-

al basketball in Germany. But young athletes or international

motor sport series are also an established part of Brose’s

commitment. Brose received the Bavarian Sports Prize in

the category “Outstanding advocate of sports” in July 2017.

We also continue to support activities in the following areas:

CultureCulture is not only an expression of but also a driving factor

behind important social values. These include openness,

advocacy and a high standard of quality. We share and pro-

mote these values.

Brose has supported the Bamberg Symphony since 2005. It

celebrated its 70th anniversary in March 2017. What we are

most passionate about is introducing young people to clas-

sical music. Twice a year symphony concerts are hosted for

students at discounted rates. We also support the Bamberg

Symphony Gustav Mahler Conducting Competition – one of

the world’s foremost events for talented young conductors,

which takes place every three years. 381 young musicians

from a total of 64 countries entered in 2016, of which 14 –

eleven male and three female conductors – were invited to

Bamberg.

Bamberg’s old town center has been a World Heritage Site

since 1993. The Bamberg World Heritage Run is designed

to bring this message closer to people. It builds a bridge

between culture and sport enthusiasts from around the

world. Every two years around 12,000 athletes from all age

groups and 40,000 spectators meet to take part in an all-day

event featuring sport, entertainment and culture. Routes of

different lengths take runners past many of the city’s most

beautiful sights. Brose has supported this event since 2005.

Social responsibilityBrose sees accepting responsibility as one of its social ob-

ligations. This is why we support charitable organizations

– especially in places that need it most.

One highlight is an employee program to integrate refu-

gees at its three Franconian locations Coburg, Bamberg

and Würzburg. in 2016 60 refugees and recognized asylum

seekers received assistance from 60 employees working on

a purely voluntary basis to prepare them for living and work-

ing in Germany. Brose supported this campaign in part by

funding training for the sponsors along with German cours-

es and psychosocial counseling for those affected. Brose

also gave refugees an opportunity to see how operations

work in the respective region.

Our employees helped the migrants help themselves and

begin paving the way for successful integration early on

so that they would be able to live an independent, self-re-

liant and satisfying life. This project, which we implement-

ed in a joint effort with the Bildungswerk der Bayerischen

Wirtschaft (Educational Institute of the Bavarian Employers’

Associations, “bbw”) and authorities from the three cities,

was the only one of its kind in Bavaria. Nearly all of the refu-

gees found career prospects.

In addition, Brose provided major support for the “Hal-

lo-App Deutsch für Kinder” developed and published by

Vision Education in Germany. Foreign children can ac-

cess the app from smartphones and tablets to learn the

basics of the German language. The app is free thanks

to the support of sponsors like Brose.

Our company is also offering refugees the opportunity to

work as machine operator apprentices. Brose has already

welcomed four refugees to its apprenticeship training pro-

gram as part of the “3+1” pilot model spearheaded by the

Coburg Chamber of Commerce (IHK). Brose provided all of

Social commitment – Sponsoring activities at Brose

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56

People at Brose

4. Investments in the community in 2017 in thousands of euros

International

National

Regional

15%

75%

10%

Social responsibility

Culture

Education

Sport

14,418

Total15,393

350245 380

the financing for the apprenticeship positions. The length of

the training program is extended because this concept – the

only one of its kind in Germany – combines language train-

ing and vocational studies with a corporate apprenticeship.

EducationOur company’s innovative strength is largely dependent on

the expertise of our employees. This is why we are involved

in the areas of science and research.

One example is our support for the “Germany Scholarship”

jointly awarded by the Federal Ministry of Education and

Research and businesses. Brose has offered these schol-

arships to students at the universities of applied sciences in

Coburg, Bamberg, Bayreuth, Würzburg and Wuppertal an-

nually since 2011 and in Ingolstadt since 2015. The schol-

arship is awarded to highly gifted students in the fields of

engineering and economics who demonstrate exceptional

promise and with whom we have personal contact. If need-

ed, we offer internships or allow scholarship recipients to

fill positions as working students. The stipend has provid-

ed financial support for 14 scholarship recipients each year

since 2015.

We cooperate with the Northern Institute of Technology

(NIT) in Hamburg to foster new talent in the field of technol-

ogy and engineering. NIT is a globally respected organiza-

tion. Since 2009, we have sponsored two students from

Germany and abroad who major in mechatronics and inter-

national production management and wish to complete

their Master’s degrees here. Brose pays tuition fees, pro-

vides the internship position students require to complete

their Master’s thesis and supports scholarship recipients

until they successfully complete their degrees.

We are also involved in polymer research. Every year uni-

versity professors from the Scientific Alliance of Polymer

Technology (WAK) present their award for forward-think-

ing Master’s or Doctor’s theses in their field of expertise.

This helps cement Brose’s relationships with current and

future specialists in the field. Our business interest in poly-

mer research has also led us to sponsor one of the awards

since 2007. The award was presented for two theses in

2016. The Master’s thesis by a graduate of the University of

Erlangen-Nürnberg received a 3,500 euro cash prize and a

dissertation by a graduate with a doctorate in engineering

from the University of Duisburg-Essen received a 5,000 euro

cash prize.

Overall, we invested more than 15 million euros in the com-

munity in 2017.

5. Coverage of investments in the community in 2017

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International

National

Regional

Notes

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Notes

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59

Notes

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Brose Fahrzeugteile GmbH & Co.Kommanditgesellschaft, CoburgCorporate Communications Brose GroupMax-Brose-Straße 196450 CoburgGermany

[email protected]